Managing Civil Unrest Risks and Financial Sustainability The Case of SASRIA SOC Limited

Abstract

Civil unrest has increasingly disrupted South Africa’s socio-economic stability, placing immense pressure on both public and private institutions. The July 2021 unrest alone resulted in insured losses exceeding R32 billion, revealing systemic vulnerabilities across the national risk landscape. SASRIA SOC Limited, a state-owned insurer mandated to provide cover for special risks such as riots, strikes, terrorism, and politically motivated violence, played a central role in managing these impacts. However, the organisation faced the complex challenge of fulfilling its developmental mandate while maintaining financial sustainability amid escalating claims and market uncertainty. This study explored the operational, strategic, and financial challenges that SASRIA encountered in managing civil unrest risks. Specifically, it examined how key personnel within the organisation experienced and responded to surging claims volumes, underwriting complexity, and reinsurance constraints. The research aimed to understand how SASRIA sustained solvency, protected stakeholder confidence, and adapted its models in the face of intensifying socio-political volatility. A qualitative case study approach was adopted, underpinned by interpretivist philosophy. Data were collected through ten semi-structured interviews with underwriters, claims specialists, and senior executives, and triangulated through document analysis of internal reports, corporate plans, and regulatory submissions. Thematic analysis was employed to identify recurring patterns, challenges, and institutional responses. The study was anchored in risk management theory, which provided a conceptual framework for understanding how organisations assess, mitigate, and respond to uncertainty. Particular attention was given to the use of stress testing, liquidity management, governance structures, and stakeholder collaboration as mechanisms of institutional resilience. The findings revealed that civil unrest placed significant strain on SASRIA’s human resources, systems, and capital adequacy. The organisation responded through adaptive risk modelling, strengthened reinsurance programmes, enhanced scenario planning, and active engagement with government stakeholders. Nonetheless, iii tensions emerged between financial prudence and developmental obligations, particularly regarding affordability and access to cover. This study contributes to the academic discourse on political risk insurance and institutional resilience in emerging markets. It also offers practical insights for policymakers, regulators, and state insurers navigating complex socio-political risk environments.